Most young people can spare only weekends or cram in free time from their work to search for their dream homes. One of the most frustrating criteria is of staying within the financial budget. As such, the term known as Real Estate Owned or REO in short, will be new to you. This is probably the key to searching that wee bit elusive something which you cannot find while looking at most foreclosure properties.
Let us first get to know what Real Estate Owned Property would mean to you. This tag given to a property shows the status when a bank tries to sell it off through auction but is unsuccessful and has still retained it as a foreclosed property. Such a listed property becomes a dead or non-performing asset to the bank. The bank therefore would be more than willing to accommodate interested parties in order to sell off the real estate owned properties.
Well, since these properties are really owned by the banks themselves, you would think that all the banks would simply try to sell them as soon as you inquire about properties for sale. In fact, banks usually have a separate department to handle categories such as real estate owned and Rental Property. However, going via this route often proves to be time consuming. Lists upon lists are provided upon your request. What's more different banks will have different lists. Searching through these lists and short listing the properties that catch your eye would be both exhausting and confusing.
There are a number of commercial services today that specialize in selling foreclosed property lists. But again, many of these do not offer the Real Estate Owned properties on first request. Your search of the ideal property might then lead you back to finding Real Estate Owned properties from the bank. As already mentioned this is really wasteful process.
What you really need is a real estate service that can shortlist the Real Estate Owned properties in addition to the foreclosures. When you find a Real Estate Owned property in the area of your choice, you can contact the owner bank for New Home Financing. You will see that the owner banks are much more welcoming to home buyers to sell off these. You can more easily create a contract with the bank on the property that is returned from the listing.
The fact that you are now aware of what real estate owned property means shows how it can help you get better deals from a bank. You can use what you know now to your advantage. People focus on foreclosed properties completely unaware of this special type of property status.
Another benefit you can look forward to from the bank is that the property will not have too much up front payment. Banks generally ask potential home buyers for an amount as an earnest money deposit. The closing date, the value of the property and a few more points, could work in your favor to make it as low as $5000.
Home buyers need to be aware of a couple of things when they begin their search for their lovely Real Estate Owned properties.
One, the banks may take the opportunity to generate their business profits through the home loan for the property. Under the circumstances, you are the best judge of what you consider as a good deal considering how badly you want to own the house or condo.
Second, sometimes banks require the new owners to occupy the property as their prime residence and not use it merely for investment purposes. When dealing with real estate owned properties, you should proceed cautiously by asking all relevant questions for the terms of the deal before signing any documents.
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